Five Reasons That Gas Prices Repeatedly Rise Up And Down - Five Reasons of Gas Prices Fluctuations
There are five main factors that pay for gas at the pump. Prices usually rise when the world's crude oil market reduces their presence. Also, gas prices will exceed the capacity of the refinery when demand Increase
- The first factor that meets the price of gas at your local station is the supply of crude oil. This pays you the price of the gas in which you pay 59 of the price and determines the world's oil exporting countries especially OP OPEC, an organization of petroleum exporting countries. The amount of crude oil these countries produce determines the price of oil per barrel
- The next factor that affects gas prices is the cost of paying for crude oil. This accounts for 10% of the total cost of gas
- The third factor is the cost of transporting crude oil to the refinery, then transporting the refined gas to the distribution site and finally to your local gas station. If you are buying a brand name of petrol, the company at the price of your brand or The cost of marketing the brand will also increase the price you pay to buy from this brand. This is 11% of the total value
- The fourth factor is 20% of the total cost of gas, including federal and local taxes. State, local and city taxes vary, with some of the gas prices you see in different geographical areas There are ups and downs
- The fifth factor is the markup of your local gas station. Obviously your local gas station is in business to make money and employees have to pay for it. So you know they must make money on the gas they sell every gallon Should However you may be surprised to learn that this amount usually does not exceed 10% and may be less than one penny per gallon! Some states have rules for controlling station markup and require at least a percentage markup to prevent large companies from keeping small stations out of business who want to reduce them
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